American Specialty Health Marks Second Anniversary of National Expansion With Major Provider, Member and Revenue Growth

SAN DIEGO, CA (June 14, 2001) - American Specialty Health (ASH) has announced a 500 percent growth in the size of its provider network as the company celebrates the second anniversary of its national expansion. During that same time, the company has seen a 75 percent growth in membership and a 40 percent growth in revenue. ASH is the nation's leading health services organization providing affordable, quality complementary healthcare to members of health plans and employer groups.

The 19,000 providers who comprise the ASH network include acupuncturists, chiropractors, dieticians and massage therapists, among others. It is the largest such network in the country. Prior to its national expansion, which now covers all 50 states plus Washington D.C., ASH had 3,000 providers serving 5 southwestern states, including California.

Concurrent with the increased provider network, ASH provides full risk administration of complementary healthcare benefits for 5.8 million health plan members, up from 3.3 million two years ago, a growth of approximately 75 percent. Through its affinity program with more than 100 health plans nationwide, about 55 million individuals have access to one or more of ASH's services.

"Public interest in complementary healthcare has grown significantly in the United States," says ASH Co-Founder, Chairman and Chief Executive Officer George DeVries. "As evidenced by our growth over the past two years, American Specialty Health is well positioned to meet these increasing consumer demands with our extensive provider network and the broad array of programs and services we offer."

That consumer demand has turned complementary healthcare into a $40 billion market in the United States. ASH's current revenues are $108 million, up from $77 million - a growth of approximately 40 percent - since the national expansion began just two years ago.

According to DeVries, the decision to expand nationally in 1999 was a combination of a pragmatic need to serve the company's growing number of national clients and a desire to grow the company. "National clients wanted to know that we could serve their full range of complementary healthcare needs regardless of where their members might be," said DeVries.

To support the growth ASH has seen over the past two years, the company consolidated its office space from more than 40 separate office suites located in four different buildings into one building in downtown San Diego.

Also in support of the growth, ASH enhanced its team of senior officers, adding individuals who have held leadership positions at other well-respected organizations throughout the healthcare industry. These have included:

• Chief Operations Officer Bob White, former chief operating officer of HealthNet
• Chief Financial Officer DeVon Wiens, former healthcare partner with Ernst & Young
• Chief Sales & Marketing Officer Michael Close, former senior vice president of sales and marketing at HealthNet
• Vice President of Operations Support Julie Jennings, former vice president of operations at CareAmerica Health Plans
• Vice President of Regulatory Compliance Sandy Ward, formerly of Aetna and Prudential
• Vice President of Sales Mike Finnerty, formerly of PacifiCare Health Systems

In addition, Jeff Folick, former president of PacifiCare Health Systems, Jeff Chamb